Thursday, September 20, 2012

Bankia breaks contract for Nou Mestalla with Valencia CF

Nou Mestalla stadium
Well sad new today in regards withe the new stadium Valencia CF was supposed to build and reached an agreement with Bankia last year to give them the old stadium and they finish the new stadium within 2 years and Valencia CF would still owe about 170 million dollars to the bank, which is a reduction. This contract won't happen as Bankia just broke it as they are in financial trouble and are basically not solvent as a bank with very little actual capital and liquidity.

But since Valencia CF actually owe Bankia the money, if Bankia goes bankrupt Valencia's debt will be fully erased. In fact if Spanish laws are similar to various international bankruptcy laws than all debt to the debtors is wiped, while the bank assets are sold to cover for the bank debt.